Traders remain indecisive near the critical 1.3600 handle, as denoted by a Doji candlestick on the daily. However, with a bearish reversal pattern absent, a complete shift in sentiment looks doubtful. A correction is likely to be met by buying support at 1.3600.

The Bullish Engulfing pattern on the EUR/USD daily chart is yet to find much follow-through as the common currency gives back gains above the 1.3600 handle. The pullback during yesterday’s session has prompted a Shooting Star candlestick, which suggests the bears may be looking to stage a return. However with support nearby, the extent of a correction may be limited. A daily close back below 1.3600 would signal enough conviction amongst traders to open the psychologically-significant 1.3500 level.

As noted in yesterday’s candlesticks report the June FOMC Meeting offered the potential for significant US Dollar volatility. The price action resulting from the meeting has prompted the emergence of a Bullish Engulfing pattern, which suggests the potential for further gains. Sellers may look to emerge at the 1.3670 mark.

The pullback from 1.3585 in recent trading has resulted in a Shooting Star candlestick pattern on the 4 hour chart. The key reversal signal suggests the potential for a continued retreat, with buyers likely to emerge at the 1.3520 mark.

The Euro bulls appear unwilling to relinquish their grip on the pair as the common currency holds above the 1.3500 handle. While several short body candles are suggestive of indecision amongst traders, they do little to suggest a more meaningful bounce at this stage. A daily close below support at 1.3500 would help signal conviction amongst the bears and open up the next psychologically-significant level at 1.3400.

Examining the four hour chart, the appearance of a second Bullish Engulfing formation near 1.3520 was enough to stir buyers and send EUR/USD on a run towards 1.3585. The emergence of a bearish reversal pattern near the notable resistance level would be seen as a new opportunity to enter shorts.

The Euro bulls are staging a return as the currency recovers some lost ground following a failure to break 1.3500. However, the extent of a bounce may prove limited, given resistance is hanging nearby at 1.3590 and bullish reversal candlesticks remain absent.

Respect potential for lower levels as long as EURUSD is below 1.3676. 1.3614/42 is resistance against that level. The line that extends off of the 2012 and 2013 lows is in line with the 2014 low at 1.3476 and could offer support. Today’s reversal shifts near term focus to 1.3635.-Longer term implications from the ending diagonal that broke in May are bearish towards at least 1.3294.

Drilling down to examine the four hour chart; a Dark Cloud Cover candlestick pattern indicated the bears were wrestling control of prices following a test of 1.3665. Now the appearance of a Dragonfly Doji suggests the bears may be hesitating near key support at 1.3500/5. With resistance hanging nearby at 1.3585, a recovery over the session ahead may prove limited

The Euro was set for further declines in the absence of a bullish reversal pattern. While the pair staged a small recovery to support-turned-resistance at 1.3670, the emergence of another Harami pattern suggests the bears have regained control of prices. Further falls may encounter buying support at the psychologically-significant 1.3500 handle.

The sharp EURUSD reversal supports the long discussed ending diagonal (wedge) interpretation. Diagonals are often fully retraced (sometimes quickly), which yields a target of 1.3294.

-There is a lot to break through at these levels. The 200 day average, October high and 2/27 low continue to hold up but 2 reversal attempts since 5/15 have failed. As such, beware a flush into 1.3560/90.

Drilling down to examine the four hour chart; a Gravestone Doji suggests the Euro bears may have run out of steam in intraday trade. While a sign of indecision from traders, it may be too early to suggest a shift in sentiment is on the cards for the common currency, given resistance looms nearby.

It may be set to extend its recent declines following a break below key support near 1.3670, and the absence of a bullish signal on the daily. Buyers are likely to step in to support the common currency at 1.3560.

It has pushed below the 1.3670 mark which has failed to confirm the Hammer formation on the daily. With the Euro closing below the noteworthy level of support, further declines may be on the cards. Buyers are likely to step in to support the common currency at 1.3560.

The sharp EUR/USD reversal supports the long discussed ending diagonal (wedge) interpretation. Diagonals are often fully retraced (sometimes quickly), which yields a target of 1.3294.

-There is a lot to break through at these levels. The 200 day average, October high and 2/27 low continue to hold up but 2 reversal attempts since 5/15 have failed. As such, beware a flush into 1.3560/90.

It continues to tease traders near critical support at 1.3670 with the Hammer formation on the daily suggesting the bulls are not prepared to relinquish their grip on the pair just yet. However, before suggesting a potential bounce back to 1.3780, the reversal signal needs to see confirmation from a successive up-day. A daily close below 1.3670 would signal strong conviction amongst the bears and open up the next noteworthy level of support at 1.3480.